US retailing giant bullish on RP

S&R Price Membership Shopping reinforces its commitment to the Philippines with the opening of its second store and believes that the country’s retail industry is a rapid-growth market which represents a lot of potential and opportunities for foreign investors.

S&R Price Membership Shopping is the first foreign retailer to operate in the Philippines under a recently enacted trade liberalization law. The company was named after Sol and Robert Price, the pioneers who developed the membership shopping concept and founded Price Club in 1976 in the United States.

The concept is to deliver significant value of the member-customer through an effective and efficient pipeline that leverages economies of scale in aggressive buying, low-cost distribution and streamlined operations.

Over the last 46 years, the evolution of the industry in the United States has resulted in more than 73 million cardholders. In the US alone, the membership-merchandising concept generates more than $57 billion in annual sales.

The S&R Price concept utilizes a simple set of fundamentals created by Sol Price called "The Six Rights of Merchandising." The Six Rights continue to provide the basis of the company’s merchandising philosophy and business practices.

Simply stated, S&R Price Membership shopping always has the right merchandise, sold at the right place at the right time, in the right quantity, in the right condition at the right price, with the right service.

The company opened its first store in the Philippines last May, bringing to the country more than 25 years of experience in the warehouse shopping industry.

"The trade liberalization law was a major step for the Philippines. I think there are some foreign companies in the sidelines watching to see how S&R Price, he pioneers, will do," said Benjamin Woods, S&R Price Membership Shopping vice president for operations in Asia.

"The Philippines has 75 million people. We see this country as a good base to continue our expansion in Asia. The company sees 10 stores within the next three years. The response from our members has been very positive," said Woods. He described the Filipino shopper as "smart." "Filipinos know good value when they see it," he added.

Not only does S&R Price offer the shopper everyday low prices, quality goods and services but also an experience similar to shopping in a warehouse club store in the United States such as Price Club or Costco.

Because S&R Price sells at low prices to both households and wholesalers, the company actually helps drop prices on basic items such as cooking oil, rice and fresh chicken.

S&R Price is able to maintain its low prices due to its buying power and by shipping goods directly from the manufacturer straight to its warehouse.

Woods added that current local vendors working with S&R Price are very pleased with the volume of merchandise that the company is able to move through a single store. Because of this, they are awaiting the opening of the second store at Ortigas Extension in Pasig on Nov. 9.

S&R Price has also opened up employment opportunities for many Filipinos since it opened its first store last May. The company will establish at least five stores by the middle of 2002 as part of phase 1 of their expansion plans. This move is expected to generate at least 1,000 new jobs. Once the expansion plan is completed, 2,000 new jobs will be created.